$1B China-Hollywood Partnership Falls Through

Paramount Pictures Loses Huahua Media Slate Film Financing Deal
– Los Angeles Times

The Los Angeles Times quoted Manatt’s Lindsay Conner, co-chair of the firm’s entertainment and media practice, on the collapse of a major China-Hollywood film deal. In January, Hollywood’s Paramount Pictures announced a $1 billion film financing deal with China’s Huahua Media, but the arrangement recently collapsed due to China’s clampdown on foreign investments.

According to the publication, the sheer size of the Huahua deal may have caught the attention of Chinese regulators.

“Let’s face it, the proposed Huahua-Paramount deal was twice as big and twice as ambitious as any of the other slate deals between China and Hollywood to date,” said Conner. “A billion dollars is an awfully big number. In the current climate, it will be hard to successfully close a deal that big.”

“Deals of a more modest but substantial scale can still be achieved in the China-Hollywood partnership,” Conner said.

Read the article here